Xi Jinping warns against breaking supply chains

Chinese President Xi Jinping warned against breaking supply chains, saying their stability was essential to sustaining economic growth.

Speaking at the Asia-Pacific Economic Cooperation (APEC) summit in the South Korean city of Gyeongju, Xi said countries should adhere to the principle of "extending, rather than breaking" supply chains, and seek new areas of shared interest while supporting open development of supply networks, CE Report quotes MIA.

It was Xi's first public statement after meeting US President Donald Trump a day earlier.

The two countries reached agreements on several trade issues. China agreed to resume buying US soybeans and suspended export controls on rare earths announced on October 9.

The United States will cut tariffs on Chinese goods linked to the opioid fentanyl to 10%, while other duties remain. Washington also withdrew some measures against companies suspected of helping sanctioned Chinese firms circumvent US export controls.

US Treasury Secretary Scott Bessent, representing the United States at APEC after Trump departed on Thursday, highlighted his country's efforts to diversify supply chains.

"From critical minerals and magnets to semiconductors and energy, the United States is investing with its trading partners to build resilient production networks that reduce dependence on vulnerable sectors," he said, according to his office, at a closed-door opening session.

Observers called the agreements between China and the US an interim result in the ongoing trade conflict between the world's two largest economies. Gabriel Wildau of consultancy Teneo said the pause could ease fears of a return to tariffs at 100% or more, which both sides threatened during the April escalation.

He added the agreement appeared fragile, as new tensions in trade or security could prompt further measures from either side.